Deutsche Post consolidates national parcel and letter mail business

12/12/2006, 12:00 AM CET

Agreement reached with ver.di

Deutsche Post has come to an agreement with the trade union ver.di for the transfer of its Parcel Germany business from the EXPRESS to the MAIL Corporate Division. In the future, both lines of business will be under the purview of the Corporate Board Member for MAIL. This step enables the company to optimize its internal flows and further improve quality of service. This change will not have an effect on document and express shipments, which remain the responsibility of the EXPRESS Corporate Division. With an additional revenue of some 2.6 billion euros the Corporate Division MAIL will then sum up to a total revenue of some 15.5 billion euros.

The background for the decision lies in the large, common customer base, as well as numerous synergies between the mail and parcel areas in Germany. There is the potential here for additional improvements in quality along with significant cost benefits. Hans-Dieter Petram, Member of the Corporate Board for MAIL at Deutsche Post World Net: "We will now be even more favorably positioned to expand our quality leadership and provide enhanced customer service, thereby improving our cost position through meaningful synergies". Common elements between the divisions include the widely-disseminated combined delivery outside of city centers as well as the shared points of sale in retail outlets.

The decision must still be approved by the executive bodies at Deutsche Post World Net. The company plans to begin to implement the agreement as early as January 2007.